Telecom Lead America: Motorola Solutions posted 3 percent increase in third quarter revenue at $2.2 billion.
Government segment contributed to the marginal growth year-on-year. Government segment sales were $1.5 billion, up 12 percent from the year-ago quarter, driven by double-digit growth in North America and solid performance in EMEA and Latin America.
Enterprise segment sales were $632 million, down 13 percent from the year-ago quarter, which included the decline in iDEN sales.
Net profit was $206 million in Q3 2012 against $128 million in Q3 2011.
“We had strong revenue and earnings growth, including record performance in our Government segment,” said Greg Brown, chairman and CEO of Motorola Solutions. “We expanded operating margins, managed our costs and grew earnings per share 27 percent driven by our operating performance and continued return of capital to shareholders.”
The company expects fourth-quarter sales to grow approximately 6 to 7 percent compared with the fourth quarter of 2011.
Michael Soper, Networking & Mobility Research Analyst, said Motorola Solutions continued its trend of growing revenues in its Government business, while seeing its Enterprise segment fall steeply due to declines in the iDEN business, which the company is exiting, as well as slow deal activity, especially in Europe.
Motorola’s public sector business will see further growth in 4Q12 and early 2013 as governments spend on new communications technology for emergency personnel and public safety LTE gains acceptance in foreign markets, such as Brazil, where Motorola recently trialed the technology.
The Enterprise business will struggle to grow organically in the remainder of 2012 as businesses, particularly those in Europe, restrain spending. New distribution channel agreements and the Psion acquisition expand Motorola’s geographic reach, but will not begin to ramp up until early 2013.
The Enterprise segment continues to face challenges, but the Psion acquisition expands Motorola’s geographic reach.
